The Chinese government has tightened its belt to ensure a stable life for its people in the face of difficulties brought by the COVID-19 epidemic, and it should continue to do so, Premier Li Keqiang said at the State Council executive meeting on Nov 6.

The meeting stressed making further financial expenditures on livelihoods to enhance people's sense of gain and the sustainability of preferential policies on this regard.

Local departments have greatly curbed their spending since the beginning of the year to increase support for the employment, income and lives of low-income groups such as rural migrant workers and impoverished households, which have been hugely affected by the epidemic.

Expenditures on people’s livelihoods should be prioritized in budget arrangement, highlighting education, elderly care, public health services, subsistence allowances and housing security, but they should meanwhile suit the reality of economic development and financial resources, the Premier said.

He urged improving systems regarding people’s livelihoods and establishing a long-term mechanism to directly allocate funds to those in need.

The direct fund channel was an important reform to cushion the huge economic impact of the epidemic this year, and the practice should remain as a long-term mechanism for precise support, the Premier said.

Premier Li required creating a list for managing fiscal outlays on people’s livelihoods, with pilot programs introduced first in the education and healthcare sectors.

He also called for alignment between the direct fund allocation mechanism and list management, as well as tighter supervision and tracking.

Timely rectification measures should be taken to ensure livelihood policies are in place and sustainable, and strict punishment should hold those accountable for interception, misappropriation or extraction of livelihood funds, Premier Li said.

The government should solidly reduce general expenditures to channel more funds to the people, he stressed.